A merchant cash advance (MCA) is a popular alternative financing option for small businesses in the UK. It provides businesses with a lump sum of cash in exchange for a percentage of their future credit and debit card sales.
With an MCA, the lender provides the business with a cash advance, which is then repaid through a percentage of the business's daily credit and debit card sales. This means that the repayment amount varies depending on the business's sales volume, and the repayment period is typically shorter than traditional loans.
It's important to note that MCAs are not regulated in the UK, which means that the terms and conditions of these agreements can vary widely between lenders. As with any financial product, it's important for businesses to carefully review the terms and conditions of an MCA agreement before signing on.
